The Banks are Lending - The View From The Sharp End!

October 2013

The commercial finance market is a different place due to the credit crunch and the recession reports Phil Gray, Managing Director, Watts Commercial Finance Ltd:

"Contrary to what the press would have you believe the financial world is still turning, just on a slightly different axis"

So what did Phil mean? Simple the banks are still lending, but the world is a different place to that of 2007 and before.

Gone of the days of wild lending, little regard to affordability and a blind eye being turned to the odd misdemeanour!

Now for the positive new, year to date Watts have arranged over £87 million of commercial funding for their clients in all sectors, proof positive that the banks are lending!

There are however some ground rules, which must be observed.

  1. Look after your bank account – lenders hate unpaid items and abuse of overdrafts, use them but don't abuse them i.e. bounced cheques, so respect your bank account, manage it correctly and stay within any agreed overdraft limits.
  2. File your accounts on time – its no longer acceptable to be filing accounts at the 11th hour at the deadline set by the Revenue. At year-end be organised, provide your accountant with required information and aim to have your accounts within 3 months or your year end.
  3. Pay your debts on time, your credit rating has never been so visible so make sure you pay your credit cards, loans and other commitments on time, don't miss any payments and treasure your credit rating with the providers, if you do, finance is simple, if you don't IT ISNT!

Another simple rule of thumb when reviewing the accounts of a target business –

When running or purchasing a trading business lenders are looking for the ability for you to be able to comfortably live from the business, cover your commitments and cover any commercial borrowing you have with a little room to manoeuvre. Lenders have a simple analogy, you will feed your family before you pay a loan, so accounts must show that the business generates enough profit to provide your personal income and service any loan that you are applying for.

If you adhere to the above rules then finance will be as simple as in 2007 and Watts working with EM&F will be delighted to assist you.

So if you are looking to buy a business as a lifestyle or to grow your existing business the message is clear, funding is available and with the correct preparation and with your application correctly presented, something Watts will be delighted to assist with, then funding the purchase of your dream business is a reality and not a pipe dream!

To turn your dreams into reality by purchasing your new business contact the Watts team on 08444 848 2993 or advice@watts-commercial.co.uk quoting EM&F and they will be delighted to assist you from initial conversation right through to the completion of the purchase.

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